Dannemora Mineral significantly reduces capital need under revised investment plan

The ongoing efforts to optimize and define the company's investment projects
have reduced the company's need for external financing by another SEK 100
million. The total external financing need is now expected to amount to SEK 300
million.
An updated investment plan shows, compared to the plan presented in September
2014, a reduced capital need from SEK 400 million to SEK 300 million.

The fundamental change from the previous plan is that the rebuilding of the
sorting plant with a dry step and a wet process will be done in an existing
building instead of a new factory building, which significantly reduces the
amount of investment capital.

Also, by using the existing industrial building, investments can be implemented
gradually, which means that deployment rate increases. As a result, recovery
rate of iron ore can reach the target of 58 percent, compared with today’s 40
percent, faster than previous estimates. After the investments, Dannemora
Mineral is expected to reach a very competitive cost level, which would give
profit even at today's low price of iron ore. Estimated cash cost, after
investments, is 38 U.S. dollars / ton.

The significantly reduced capital need for the necessary investments - to
rebuild the sorting plant to increase the recovery rate and to move crushing
below the ground to meet the environmental requirements imposed - means that the
number of potential investors can widen. This in turn increases Dannemora
Mineral's chances of reaching a settlement.

Additional details are available in the presentation Updated investment and
business plan - October 2014, which is available at Dannemora Mineral's website:
www.dannemoramineral.se/en/investors/reorganisation/.
For further information, please contact:
Ralf Nordén, President and CEO
Telephone 46 709374891
ralf.norden@dannemoramineral.se
Dannemora Mineral AB is a mining and exploration company of which the primary
activity is mining operations in the Dannemora iron ore mine. The Company
intends to engage in exploration activities to increase the iron ore base
locally and regionally.The Company’s most important asset is the iron deposit in
the Dannemora Mine, and activity is focused mainly on the mining of this deposit
at present.

The Company is listed on NASDAQ OMX First North, Stockholm, and Oslo Axess. The
Company's Certified Advisor on First North is Remium Nordic AB.

The Company's independent qualified person is mining engineer Thomas Lindholm,
Geovista AB, Luleå. Thomas Lindholm is qualified as a Competent Person, as
defined in the JORC Code, based on education and experience in exploration,
mining and estimation of mineral resources of iron, base and precious metals.